In the case of Michael Williams, et al. v. Insomnia Cookies, LLC, et al., the plaintiffs, Michael Williams and Jonn Gibson, employed as General Managers, sued Insomnia Cookies, LLC, Serve U Brands, Inc., and Seth Berkowitz, alleging wage and hour claims under the Fair Labor Standards Act (FLSA), the Missouri Minimum Wage Law (MMWL), and the Missouri Unpaid Wage Law (MUWL). They also brought claims for Breach of Implied Contract for Costs and Expenses of Electric Delivery Vehicle, and Failure To Pay To Delivery Experts Working ‘On The Road’.
Factual Overview
Williams and Gibson claim they were not compensated appropriately for overtime in accordance with the FLSA, MMWL, and MUWL. They assert that their work schedules significantly exceeded the standard 40-hour workweek without receiving due overtime wages. Specifically, Gibson’s allegations include working between 55 to 85 hours per week but not being compensated for overtime. They seek to represent similarly situated non-exempt employees in a collective action under the FLSA and a class action under Missouri’s wage and hour laws for failure to pay wages and overtime.
Legal Analysis
Motion to Compel Arbitration as to Plaintiff Williams: Defendants filed a motion to compel arbitration for Williams, asserting he had electronically signed an arbitration agreement. The court, applying the summary judgment standard, reviewed evidence including declarations and metadata showing Williams accepted the arbitration agreement via an electronic portal during his onboarding process. Despite Williams’ contention that he did not sign the agreement, the court found undisputed evidence of his acceptance and granted the motion to compel arbitration, staying the proceedings for Williams pending arbitration outcome.
Motion to Dismiss Plaintiff Gibson’s Claims: The court then turned to Defendants’ motion to dismiss Gibson’s claims. Defendants challenged Gibson’s ability to state a claim for overtime violations under the FLSA and the adequacy of allegations against Berkowitz as an “employer” under the FLSA. The court found Gibson sufficiently alleged facts to state a claim for overtime violations, detailing workweeks exceeding 40 hours without proper overtime compensation. However, it dismissed FLSA claims against Berkowitz, concluding Gibson failed to provide sufficient facts establishing Berkowitz as an employer responsible for the alleged FLSA violations.
Collective Action Claims Involving Out-of-State Employees: Addressing Defendants’ argument against the jurisdiction over claims by employees outside Missouri, the court dismissed those FLSA collective action claims for lack of personal jurisdiction, aligning with the Supreme Court’s guidance in Bristol-Myers for a claim-by-claim determination of specific jurisdiction. In conclusion, the court compelled arbitration for Williams based on an arbitration agreement and partially granted and denied the motion to dismiss Gibson’s claims. It dismissed FLSA claims against Berkowitz and collective action claims involving out-of-state employees for lack of personal jurisdiction, retaining supplemental jurisdiction over Gibson’s remaining state law claims.
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